Overview
- The Debt Management Office’s Annual Borrowing Plan sets gross financing needs at Rs28.647 trillion for FY2026-27, driven by a Rs7.02 trillion fiscal deficit plus Rs21.627 trillion in debt maturities.
- The government plans to cover most of the deficit with net domestic borrowing of Rs6.046 trillion, with Rs813 billion of net external financing and Rs161 billion from privatisation proceeds.
- To lengthen the debt profile the plan cuts reliance on short-term Treasury Bills and targets net issuance of Rs4.58 trillion in Pakistan Investment Bonds, alongside roughly Rs6.6 trillion in gross Sukuk issuance and Rs3.785 trillion in specific Sukuk instruments.
- External financing is modest and conditional, with projected net inflows of USD 2.804 billion, an expected USD 1.58 billion from multilateral lenders, and a contingent plan to tap about USD 2 billion from international bond markets if conditions permit.
- The plan continues active liability management after Rs4.7 trillion of buybacks and switches since September 2024, notes a public debt stock of Rs86.7 trillion at end-June 2026, and says longer maturities and lower interest costs helped reduce immediate refinancing pressure but leave outcomes tied to market access and macro stability.